Does Beggars Pizza's approval of a site constitute a warranty of the site's suitability?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby acknowledges and agrees that Franchisor's approval of a site does not constitute an express or implied assurance, representation, or warranty of any kind of the suitability of the site for the Restaurant or any other purpose.
Franchisor's approval of the site indicates only that Franchisor believes the site complies with acceptable minimum criteria established by Franchisor solely for its purposes as of the time of the evaluation.
Both Franchisee and Franchisor acknowledge that application of criteria that may have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to
Franchisor's approval of a site, demographic and/or economic factors, such as competition from other similar businesses, included in or excluded from Franchisor's criteria could change, thereby altering the potential of a site or lease. Such factors are unpredictable and are beyond Franchisor's control. Franchisor will not be responsible for the failure of a site approved by Franchisee to meet Franchisee's expectations as to revenue or operational criteria. Franchisee further acknowledges and agrees that its acceptance of a franchise for the operation of the Restaurant at the site is based on its own independent investigation of the suitability of the site.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor's approval of a site for a restaurant does not constitute any assurance, representation, or warranty regarding the site's suitability. Beggars Pizza's approval only indicates that the franchisor believes the site meets its minimum criteria at the time of evaluation.
Beggars Pizza emphasizes that the criteria used for site selection may not accurately predict the potential of all sites. Factors such as demographic or economic changes, including competition, can alter a site's potential after approval. These factors are beyond Beggars Pizza's control, and the franchisor will not be held responsible if an approved site fails to meet the franchisee's revenue or operational expectations.
The FDD makes it clear that the franchisee is responsible for conducting their own independent investigation to determine if the site is suitable for their Beggars Pizza restaurant. The franchisee acknowledges that their decision to accept the franchise location is based on their own due diligence, not on any warranty or guarantee from Beggars Pizza regarding the site's potential success.